Market Definition
The Electric Vehicle (EV) Charging Infrastructure is the network of charging stations & associated technology that is required for the charging of electric vehicles. The infrastructure includes both public & private charging stations, as well as hardware & software systems that are necessary to provide efficient charging to different kinds of electric vehicles.
Market Insights & Analysis: UAE Electric Vehicle Charging Infrastructure Market (2023-28)
The UAE Electric Vehicle Charging Infrastructure market is projected to grow at a CAGR of around 14.28% during the forecast period, i.e., 2023-28. The market growth is attributed to the soaring investment by the government of the UAE to deploy charging infrastructures across the nation to support the transition toward sustainable transportation. This was done by the UAE government’s targets to reduce carbon emissions through expatriates' adoption of EVs.
Moreover, the smart city initiatives by the UAE government are predicted to facilitate partnerships between public & private stakeholders to develop & fund the charging infrastructure. Along with this, public-private partnerships could help to reduce the financial burden on charging infrastructure providers & enable the development of a more comprehensive charging network. Additionally, various measures adopted by the government (like Dubai Green Mobility Strategy 2030) have widely encouraged customers to adopt EVs, which, in turn, has increased the demand for the construction of more charging stations. For instance,
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 14.28% |
| Region Covered | Dubai, Abu Dhabi & Al Ain, Sharjah & Northern Emirates |
| Key Companies Profiled | Orbix International LLC, V Charge Trading LLC, GreenParking [Future Link L.L.C.], ABB Limited, Art of Energi, Regeny, Powertech Electrical Trading LLC, eMagine, Efacec , Siemens LLC, Catec , Others |
| Unit Denominations | USD Million/Billion |
Further, the announcement of the UAE government in 2018 to invest over USD136.35 billion in electric & hybrid vehicles, sustainable transport, and related infrastructure by 2050 is expected to continue to encourage the revenue growth of the market in the forthcoming years.
UAE Electric Vehicle Charging Infrastructure Market Driver:
Government Initiatives to Boost the EV Charging Infrastructure of the Country - The UAE government has been launching initiatives to promote the usage of electric vehicles (EVs) & develop the charging infrastructure. The government is implementing such measures to reduce its carbon footprint, promote the use of cleaner fuels, economic diversification (such as in Abu Dhabi Economic Vision 2030), and reduce air pollution in the country.
The government has also been providing financial incentives to those purchasing EVs, such as reduced registration fees & lower customs duties. These incentives have helped to boost the adoption of EVs in the country, which, in turn, has created more demand for charging infrastructure. These initiatives of the UAE government have widely promoted the revenue growth of the market in the UAE. In addition, the rising focus of the UAE government to boost FDI in the automotive manufacturing of EVs to enhance the supply of EVs in the country is expected to further boost the demand during the forecast period.
UAE Electric Vehicle Charging Infrastructure Market Possible Restraint:
High Installation & Maintenance Costs to Limit the Private Sector Participation in the Ownership & Operation of the Charging Stations - Building electric vehicle charging stations requires significant capital investment for the complete procedure, including acquiring land, equipment, installation, and maintenance. The installation cost of electric vehicle charging infrastructure is high, especially for fast-charging stations, requiring heavy-duty electrical equipment & a high-capacity power supply. The excessive cost makes it less attractive for private investors who are hesitant to invest in projects with high initial capital requirements & long-term maintenance costs, creating a barrier to market growth.
Additionally, high installation & operational costs would elevate the price of charging services, reducing consumer demand for electric vehicles & slowing down the adoption rate. However, the UAE government is presently taking several steps, such as publicizing the regulatory policies, standardizing the installation & operation of charging stations, etc., to encourage private investment in electric vehicle charging infrastructure, therefore overcoming this challenge in the following years.
UAE Electric Vehicle Charging Infrastructure Market Growth Opportunity:
Smart City Initiatives to Provide Platform for the Development of the Charging Stations - Smart city initiatives could offer several opportunities for the UAE electric vehicle charging infrastructure market. These initiatives aim to integrate different technologies & services to make cities more efficient, sustainable, and livable. Additionally, the increasing installation of integrated charging stations by DEWA in the UAE in the newly developed smart cities to provide residents with ease is expected to further facilitate the market's revenue growth in the coming years.
UAE Electric Vehicle Charging Infrastructure Market Key Trend:
Integration of Renewable Energy in Charging Stations - Renewable energy sources, such as solar & wind power, are being incorporated into the charging infrastructure to reduce carbon emissions & promote sustainable transportation. As the transportation sector is one of the largest sources of greenhouse gas emissions, the demand for sustainable transportation solutions is being encouraged by the government & the local public. For instance:
Moreover, the unification of renewable energies also helps in operational cost-cutting of the charging stations in the long run & thus is preferred by the station owners. Additionally, the UAE is trying to diversify its energy mix, as per the UAE 2050 Energy Goals, which include 44% clean energy, 38% gas, 12% clean coal, and 6% nuclear. This, in turn, is anticipated to boost the demand for sustainable mobility in the country & would further increase the need to deploy additional green energy charging infrastructure with enhanced charging capabilities. Further, encourages the revenue growth of the market in the upcoming years.
UAE Electric Vehicle Charging Infrastructure Market (2023-28): Segmentation Analysis
The UAE Electric Vehicle Charging Infrastructure Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on the Type of Charging Point:
The DC Adapter gained a considerable share in the UAE Electric Vehicle Charging Infrastructure market historically & the same trend is anticipated to continue in the forecast years as well. The surging initiatives made by the UAE government to deploy fast charging infrastructure for EVs are one of the key factors augmenting the sales of DC chargers in the country.
Moreover, the growing initiatives of the UAE government to drive the sales of electric vehicles in the country by offering various incentives such as a grant of up to USD 21,780, access to dedicated parking spots, etc., are further anticipated to propel the sales of EVs in the country. Thus, with the surging sales, the need to deploy fast charging infrastructure suited for both passenger and commercial EVs is expected to heighten the demand for DC-based chargers, hence supporting the revenue growth of the market in the years ahead.
Based on Power Output:
Here, the 50-150kW power output is expected to gain substantial revenue growth in the forecast years due to its ability to charge electric vehicles quickly. The 50-150kW charging stations can typically provide a full charge for an electric vehicle in less than an hour, making them a convenient option for EV drivers who are on the go & need to charge their vehicles quickly. Additionally, many commercial EVs such as buses, delivery vans, and trucks require higher power charging infrastructure due to their larger battery size & higher energy consumption, thereby, making the 50-150kW charging stations a more attractive option for drivers.
Moreover, as the government of the UAE is actively taking initiatives to boost the deployment of electric buses in the country, the need for 50-150kW charging stations is anticipated to rise enormously. For instance, the Abu Dhabi Department of Transport has set a target of having 50% of its public buses run on clean energy sources, including electric & hybrid technologies by 2023. Thus, with the surging initiatives to deploy more EVs for commercial purposes, more public chargers are expected to be launched in the upcoming years, which would result in a significant demand for 50-150KW power output charging infrastructure in the coming years as well.
UAE Electric Vehicle Charging Infrastructure Market Regulatory Landscape
In 2022, Abu Dhabi's Department of Energy released a regulatory policy for electric vehicle charging infrastructure. The policy aims to create a framework for meeting net-zero emissions by 2050 & promoting the use of EVs in the emirate. The policy mentions the principles for the ownership, installation, and management of electric vehicle supply equipment, power supply to charging installation & pricing mechanisms for customers.
UAE Electric Vehicle Charging Infrastructure Industry Recent Developments
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Frequently Asked Questions
A. The UAE Electric Vehicle Charging Infrastructure Market during 2023-28 is expected to grow at a growth rate of around 14.28%.
A. The government initiative is the primary factor driving the UAE Electric Vehicle Charging Infrastructure Market during 2023-28.
A. The top players in the UAE Electric Vehicle Charging Infrastructure Market are Orbix International LLC, V Charge Trading LLC, GreenParking (Future Link L.L.C.), ABB Limited, Art of Energi, Regeny, Powertech Electrical Trading LLC, eMagine, Efacec, Siemens LLC, and Catec.
A. DC charging point is the leading ‘Type of Charging Point’ in the market.
A. The integration of renewable energy in charging stations is the key trend shaping the growth of the UAE Electric Vehicle Charging Infrastructure Market.
A. The industry's potential end-users are Two-wheelers, Passenger Cars, and Commercial Vehicles.
A. The high installation & maintenance costs to limit the private sector participation in the ownership & operation of the charging stations are hindering the growth of the market.
UAE Electric Vehicle Charging Infrastructure Market Research Report (2023-2028) - Table of Contents
